Peter Lawson

Partners chose to inject the cash into the business instead of raise bank borrowings. The firm has also reduced its monthly drawing by 25 per cent as well as deferred quarterly profit distribution.

Chairman Peter Lawson said taking a prudent approach to managing the impact of the coronavirus pandemic was “the right thing to do”.

He added: “It’s the equity partners who benefit most in the good times, so they also need to help navigate the choppy waters.”

The firm had 43 equity partners in 2018/19, with those at the top taking £528,000 last year, according to The Lawyer UK200.

Mr Lawson said the firm was told at a weekly conference about the capital raising and that clients were made aware of it.

He added: “We needed to send a message to say we were ready to take decisive action and back ourselves; it also means we aren’t always looking at our financials because we know we have a strong financial position so we can get on with running the firm.”

Managing partner Tamar Tammes said that a “cash first” approach was needed and that lessons had been learned from the 2008 crisis.

“We are not confident about what comes next in the wider economy; when furlough ends nationally there will likely be more pain to come across a wide range of industry sectors. As a firm we have to prepare as best we can to mitigate that,” she said.

She added that staff in the firm’s three offices will not be required to be in the office for the rest of the year, except those in business-critical roles.